Shawn Smith spoke to Law360 about strict foreclosure actions, on the heels of a Connecticut Supreme Court ruling clarifying the issue. The court ruled that the debtor properly challenged the amount his bank sought to recover even though he did not provide paperwork to support his claim. Smith stated that the decision “serves as an important reminder that, at all times, the plaintiff bears the burden of establishing the amount of the debt owed,” and “it is important for plaintiff’s counsel, creditor’s counsel, to understand the amount of the debt owed under the loan documents and proactively address any perceived issue with the calculation.” He also noted that “the defense must be tied to the specific amounts of the debt, not ancillary matters,” and “if the defense challenges whether the loan is in default, that wouldn’t count.”
7.6.2023